Warren Buffett is one of the greatest investors in the world in my opinion. He likes a certain type of business. He generally stays away from technology shares because it's outside his circle of competence. But I think there are certain ASX growth shares that he'd like.
I think the best way to compound your wealth is to go for shares that are growing at a nice pace.
Here are three businesses that I'd call Warren Buffet ASX growth shares:
Wesfarmers Ltd (ASX: WES)
Berkshire Hathaway is an excellent conglomerate. Wesfarmers is another quality conglomerate based in Australia with a variety of different businesses like Bunnings, Officeworks, Kmart, Catch and industrial businesses.
Wesfarmers has been growing for decades and I think its strategy provides it with the best growth platform out of the ASX 20. Bunnings, the crown jewel, seems to be able to perform well whether the economy is booming or there's a global coronavirus pandemic. It's able to acquire into different industries.
It's always on the lookout for smart acquisitions to grow earnings and it recently expanded its financial capacity which could be used to make a sizeable acquisition.
Online is the way forward for retail and Catch could be one of the best retailers to benefit from that.
Washington H. Soul Pattinson and Co. Ltd (ASX: SOL)
Soul Patts is another conglomerate. It's one of my favourite ASX shares, particularly in these current conditions due to its holding of defensive shares like TPG Telecom Ltd (ASX: TPM). We all need to keep paying our telco bill to keep accessing the internet.
The great thing about Soul Patts, other than its growing dividend, is that it's constantly investing in new shares with its retained profits. Last year it kept about a fifth of its net regular operating cashflow which allows it to invest in other opportunities like agriculture.
Its biggest holdings today are investments that it made a long time ago that have grown into very large businesses. Soul Patts is always trying to find those next big opportunities. It's fairly active in the small cap space.
I think Soul Patts is the most similar business to Berkshire Hathaway on the ASX.
Qantas Airways Limited (ASX: QAN)
This is a bit of an odd choice. But Berkshire Hathaway is a large investor in US airline shares and I think he'd be happy to invest in Qantas which now has an even stronger position in Australia, particularly with its main domestic rival seriously struggling.
The thing about Qantas is that whilst short-term passenger traffic is low, it has a strong financial position to get through. Remember that 9/11 was only a temporary setback for the airline industry.
Things may take a while to get back to somewhat normal, and air travel may be changed permanently in some ways, but my guess is that air travel will return quite strongly when people become more confident again.
With oil prices so low and the Qantas share price so cheap, I think it can be a solid buy today. Just the return of domestic flights would be a big boost for the Aussie airline.
Foolish takeaway
All three of these shares have been long-term growth shares, with a few hurdles along the way. I think they'd all be good ASX growth shares to buy, particularly Soul Patts because of its diversification and reliability.
